East Japan Railway Co (East Japan Railway Co) ROCE % : 5.66% (As of Dec. 2023)

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What is East Japan Railway Co ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. East Japan Railway Co's annualized ROCE % for the quarter that ended in Dec. 2023 was 5.66%.

East Japan Railway Co ROCE % Historical Data

The historical data trend for East Japan Railway Co's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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East Japan Railway Co ROCE % Chart

East Japan Railway Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

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7.04

5.04

-9.23

-1.59

2.38

East Japan Railway Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															4.02	2.45	4.12	5.64	5.66

East Japan Railway Co ROCE % Calculation

East Japan Railway Co's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	1437.4	/	( ( (76670.799 - 14240.133)	+	(69965.57 - 11463.435) )	/ 2 )
	=	1437.4	/	( (62430.666	+	58502.135)	/ 2 )
	=	1437.4	/	60466.4005
	=	2.38 %

East Japan Railway Co's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	3175.88	/	( ( (64626.636 - 9140.783)	+	(66708.341 - 9955.453) )	/ 2 )
	=	3175.88	/	( ( 55485.853	+	56752.888 )	/ 2 )
	=	3175.88	/	56119.3705
	=	5.66 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

East Japan Railway Co (OTCPK:EJPRY) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

East Japan Railway Co ROCE % Related Terms

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East Japan Railway Co (East Japan Railway Co) Business Description

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9020:Japan EJR0:Germany EJR:Germany EJR:Germany

Address

2-2, Yoyogi 2-chome, Shibuya-ku, Tokyo, JPN, 151-8578

Website

http://www.jreast.co.jp

East Japan Railway Company, or JR East, is the largest railway operator in Japan. It was originally established when the government-owned nationwide railway operator underwent a six-way territorial split in 1987, though it wasn't fully privatized until 2002. It runs both long distance bullet trains, known as Shinkansen, and shorter municipal train routes around and from Tokyo. Its 7,400 kilometers of rail track covers half of Japan's population and a third of the country's land area. Two thirds of revenue is from transportation, with most of the rest from retail operations and real estate investments.